Tuesday, June 26, 2012

Banknifty - Elliott Wave Analysis

Banknifty shows a clearer 5 wave pattern as compared to Nifty. I feel we have started on wave [3] of III. And presently we are correcting in wave (2) of [3] of III. STS and RSI has reached oversold levels. MACD is approaching zero level. We have got support around 9800 levels. But all this is true if our of count of wave [2] completing at 9625 is correct.
There is a possibility of a bigger correction towards 9625 levels forming a bigger flat correction in wave [2], we should be alert to that possibility if we decidedly break below 9800 levels. Adding the daily chart below for reference.
We have a big hidden divergence on STS. RSI is hovering around 50 levels. And similar to Nifty MACD is moving sideways above the zero levels, which suggests that, the possibility of an up move is still intact. But a close below 9545 should be crucial to this possible up move.

No comments:

Post a Comment

...I am thrilled to learn what you think about this piece of content...